May 09, 2017
Mr C was self-employed and was 100% shareholder in his own limited company. He paid himself a basic salary of £6,000 per annum but did not take any dividends in the most recent year. The company made a net profit of £50,000.
- The first lender would only give Mr C a mortgage of £15,000
- However, the second lender took a completely different view and would lend £225,000
This is because the clear majority of lenders will lend purely based on salary and dividends rather than looking at the profit of the company. There are a few however that will look at the profit when assessing lending, which is how we obtained the lending required.